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Russian banks authorized to halt transfers with CBDCs for days
Russian banks authorized to halt transfers with CBDCs for days
The Bank of Russia introduced new rules, effective on February 23, 2025, requiring banks to suspend digital ruble transactions for two days if they are suspected of involving fraud. If such a transaction is detected, the bank will notify the customer about possible fraud. If the customer doesn't confirm it by the next day, the transaction will be canceled. Similar measures have been in effect for ordinary transfers since July 24, 2024. https://cbr.ru/press/event/?id=23261
#CBDC#CryptoAssets#Fraud#Fintech#DFC
·crypto.news·
Russian banks authorized to halt transfers with CBDCs for days
Hyperledger in Action: Central Bank Digital Currencies
Hyperledger in Action: Central Bank Digital Currencies
As central banks around the world have explored and researched the uses, viability, and needs for a central bank digital currency (CBDC), Hyperledger’s distributed ledger technologies (DLTs) have been at the forefront of these experimentations. This ebook provides the reader an overview of the Hyperledger Foundation, why open source development is appropriate for all central bank projects and real-life examples of CBDC projects around the world.
#CBDC#Fintech#Hyperledger#DFC
·media.licdn.com·
Hyperledger in Action: Central Bank Digital Currencies
CBDC in the Market for Payments at the Point of Sale
CBDC in the Market for Payments at the Point of Sale
The Bank of Canada (BOC) published a paper that investigates the introduction of a retail central bank digital currency (CBDC) into the market for payments. Focusing on the point of sale (POS), it develops and estimates a structural model of consumer adoption, merchant acceptance and usage decisions. It counterfactually simulates the introduction of a CBDC, considering a version with debit-like characteristics and one encompassing the best of cash and debit, and characterize outcomes for a range of potential adoption frictions. It shows that, in the absence of adoption frictions, CBDC has the potential for material consumer adoption and merchant acceptance, along with moderate POS usage. However, modest adoption frictions substantially reduce outcomes along all three dimensions. Incumbent responses required to restore pre-CBDC market shares are moderate to small and further reduce the market penetration of CBDC. Overall, this implies that an introduction of retail CBDC into the market for payments is by no means guaranteed to be successful.
#Fintech#CBDC#Payments#Canada#DFC
·bankofcanada.ca·
CBDC in the Market for Payments at the Point of Sale
A proposal for a retail CBDC architecture
A proposal for a retail CBDC architecture
The Bank for International Settlements (BIS) published a paper by its Consultative Group on Innovation and the Digital Economy (CGIDE) that discusses four main processes in a retail central bank digital currency (CBDC) architecture. These are: i) enrolling new users, ii) creating CBDC (cash-in), iii) destroying CBDC (cash-out) and iv) intra-ledger transfers. These four processes could involve other flows and vary depending on the CBDC design, regulatory framework, technological infrastructure and policy objectives of each jurisdiction. The architecture lays out a hybrid model which allows for the division of labor between the central bank and private intermediaries.
#Fintech#CBDC#rCBDC#BIS#DFC
·bis.org·
A proposal for a retail CBDC architecture
Fee-free period for digital ruble transactions extended
Fee-free period for digital ruble transactions extended
On November 29, 2024 the Bank of Russia announced the extension of extend the fee-free period for digital ruble transactions to December 31, 2025. After that the fee for businesses accepting payments for goods and services in digital rubles will be 0.3% of the payment amount (but no more than ₽1,500). The fee for housing and utility companies will be 0.2% but no more than ₽10. The fee on business-to-business transfers will equal ₽15 per transaction. However, digital ruble transactions will always be fee-free for individuals.
#Fintech#CBDC#Russia#DFC
·cbr.ru·
Fee-free period for digital ruble transactions extended
Exploring Open Source in CBDC Development
Exploring Open Source in CBDC Development
The Digital Euro Association (DEA) published a paper that I contributed to on the opportunities and challenges of using open-source software (OSS) in central bank digital currency (CBDC) development. The use of OSS could be crucial in building trust and transparency within CBDC projects, especially for retail CBDCs in regions where consumers and advocacy groups have resisted their implementation. By making the source code publicly available, central banks can facilitate independent verification of the software’s functionality, which could help to address concerns around privacy and surveillance. By analyzing successful case studies and industry best practices, this report seeks to guide central banks in making informed decisions about OSS adoption.
#CBDC#Open Source#Fintech#DEA#DFC
·blog.digital-euro-association.de·
Exploring Open Source in CBDC Development
Digital euro stakeholder feedback and update on holding limit methodology
Digital euro stakeholder feedback and update on holding limit methodology

The European Central Bank (ECB) published material presented at the December 10, 2024 European Retail Payments Board (ERPB) digital euro technical session. The ECB provided an overview of the market stakeholder feedback and contributions on the consultation launched at the October 1, 2024 ERPB technical session. Aso, the ECB provided an initial overview of the methodology being used for the calibration of holding limits. https://www.ecb.europa.eu/euro/digital_euro/timeline/profuse/shared/pdf/ecb.deprep241212_14erpb_Summary_of_feedback_on_Fit_in_the_ecosystem.en.pdf https://www.ecb.europa.eu/euro/digital_euro/timeline/profuse/shared/pdf/ecb.deprep241212_14erpb_Annex_to_preliminary_methodology_for_holding_limit_calibration.en.pdf

#Fintech#CBDC#Eurozone#ECB#DFC
·ecb.europa.eu·
Digital euro stakeholder feedback and update on holding limit methodology
The role of CBDC in an increasingly digital economy
The role of CBDC in an increasingly digital economy
The Bank of England (BOE) published a paper that proposes a simple mechanism through which an unremunerated central bank digital currency (CBDC) may improve welfare by lowering the market power financial intermediaries have in negotiating fees with digital firms that cannot use cash as an alternative means of payment. However, welfare benefits will be reduced to the extent that the CBDC reuses existing payment infrastructure without providing additional competition, efficiency and functionality. Final version:
#Fintech#CBDC#UnitedKingdom#DFC
·bankofengland.co.uk·
The role of CBDC in an increasingly digital economy
Macau pataca prototype system development completed
Macau pataca prototype system development completed
The Monetary Authority of Macau (AMCM) has completed the development of a prototype digital Macau pataca (e-MOP) which will soon undergo sandbox and public testing. There is also a chance it will be linked to China’s e-CNY and Hong Kong's e-HKD in the future. The People’s Bank of China (PBOC) provided technical support, and the Hong Kong Monetary Authority (HKMA) is responsible for supervising and managing e-MOP issuance, cancellation and circulation. The AMCM will set up self-service money exchangers to allow holders to accept e-MOP or other foreign currencies for cash reloading by exchanging money. https://www.amcm.gov.mo/zh-hant/news-notice/emop/
#Fintech#CBDC#China#HongKong#Macau#DFC
·gov.mo·
Macau pataca prototype system development completed
Bank Indonesia complete digital rupiah PoC
Bank Indonesia complete digital rupiah PoC
Bank Indonesia (BI) completed its Project Garuda proof of concept (PoC) for a distributed ledger technology (DLT) based digital rupiah wholesale cash ledger. The testing confirmed that the solution can meet the business and technical needs requirements (transaction security, interoperability with existing payment systems and financial infrastructure). Two DLT-based platforms were tested; Corda (R3) and Hyperledger Besu (Kaleido). Both were able to meet all testing scenarios and address all key questions. Project Garuda will proceed with a broader exploration of securities ledger, including exploring liquidity management and privacy technology.
#Fintech#CBDC#Indonesia#wCBDC#DFC
·bi.go.id·
Bank Indonesia complete digital rupiah PoC
SocGen completes repo transaction on public blockchain with Banque de France
SocGen completes repo transaction on public blockchain with Banque de France
Societe Generale (SocGen) completed a collateralized market transaction fully executed on blockchain through its FORGE subsidiary. This is the first sale and repurchase agreement (repo) transaction in digital securities with a Eurosystem central bank. SocGen deposited as collateral with the Banque de France some bonds issued in 2020 on the public Ethereum blockchain in exchange for pilot central bank digital currency (CBDC) issued by the Banque de France on its DL3S blockchain.
#Fintech#Blockchain#Settlement#Tokenization#CBDC#wCBDC#Eurozone#France#Repo#Ethereum#DFC
·societegenerale.com·
SocGen completes repo transaction on public blockchain with Banque de France
Exploring wholesale central bank digital currencies
Exploring wholesale central bank digital currencies
The Cambridge Centre for Alternative Finance (CCAF) published a report that reviews the case for a wholesale CBDC, the various approaches in how it can be delivered, and an assessment of the pilots and experiments undertaken by the industry and central banks. It finds that buy- and sell-side firms are progressing with tokenization initiatives, driving a need for digital money for the cash leg. which may increasingly be delivered through tokenized bank deposits or stablecoins. Meanwhile, central banks are raising concerns on the risks of using such private settlement assets for settlement, facilitating experiments demonstrating how central bank money can be used instead, but with no clear indication yet on how and when this may be delivered in practice.
#Fintech#CBDC#wCBDC#Tokenization#Settlement#DFC
·jbs.cam.ac.uk·
Exploring wholesale central bank digital currencies
AXA IM in two ECB wholesale CBDC trials
AXA IM in two ECB wholesale CBDC trials
AXA Investment Managers (AXA IM) executed two transactions using the Banque de France’s pilot distributed ledger technology (DLT) based wholesale central bank digital currency (CBDC), as part of the Eurosystem wholesale DLT settlement trials. The first was a €3 million investment by AXA IM, on behalf of AXA France, into a digital sovereign bond issued by the Republic of Slovenia. The transaction was executed on BNP Paribas’ “Neobonds” tokenization platform with T+1 settlement on T+1 using the Banque de France’s DL3S platform. The second experiment executed a fund share subscription of €1 million from Generali into AXA Court Terme with instant settlement process using digital CeBM via the IZNES blockchain platform. https://www.axa-im.com/media-centre/axa-im-continues-its-initiatives-test-blockchain-technology-part-ecbs-exploratory-work-central-bank
#Fintech#CBDC#wCBDC#Settlement#Tokenization#DLT#ECB#France#Eurozone#DFC
·ledgerinsights.com·
AXA IM in two ECB wholesale CBDC trials
Kyrgyz parliament approves draft CBDC law
Kyrgyz parliament approves draft CBDC law
The Constitutional Law, State Structure, Judicial and Legal Issues, and Parliamentary Regulations Committee of the Kyrgyz Parliament has reportedly approved the draft law on the status of the digital som – in its first reading. It is designed to launch a pilot project for a prototype digital som and to establish its legal framework and status. Testing of the prototype is scheduled to begin in early 2025, and a final decision on the launch of the digital som is planned for the end of 2026.
#Fintech#CBDC#Kazakhstan#DFC
·en.trend.az·
Kyrgyz parliament approves draft CBDC law
RBF says no to digital Fiji dollar
RBF says no to digital Fiji dollar
The Reserve Bank of Fiji (RBF) has reportedly ruled out issuing a central bank digital currency (CBDC) for Fiji, and is instead focusing on modernizing its existing national payment system. In the meantime, the RBF will continue to keep a tab on how other central banks progress on CBDC as well monitor international new developments that may influence Fiji’s payment system.
#CBDC#Fintech#Fiji#DFC
·fijitimes.com.fj·
RBF says no to digital Fiji dollar
Kiwis say privacy is crucial in Digital Cash
Kiwis say privacy is crucial in Digital Cash
The Reserve Bank of New Zealand (RBNZ) published the results of a public consultation on New Zealanders’ views on a Kiwi central bank digital currency (CBDC). The vast majority of respondents expressed concern about the potential for government control, privacy, traceability, and autonomy. Many feared Digital Cash will be used to facilitate unacceptable intrusion into their privacy or social control, even if it is not originally designed to do so. In that regard, they want assurance that physical cash will still be issued by the RBNZ. In response, RBNZ said that it remains committed to a privacy-centric design for Digital Cash subject to financial integrity considerations.
#Fintech#CBDC#Privacy#NewZealand#DFC
·rbnz.govt.nz·
Kiwis say privacy is crucial in Digital Cash
Enhancing the Privacy of a Digital Pound
Enhancing the Privacy of a Digital Pound
The Bank of England (BoE) published a joint report with MIT Digital Currency Initiative (DCI) on how privacy enhancing technologies (PETs) could be used to enhance the privacy of a potential digital pound. The paper focused on pseudonymization, zero-knowledge proofs, and secure multiparty computing. It found that these technologies present opportunities for a central bank digital currency (CBDC) to be at least as private as current forms of digital money and potentially even more private as they mature. While PETs, on their own, do not guarantee privacy, the approaches explored in this paper seek to safeguard consumers’ private information, enable compliance with existing regulations, and strengthen trust and confidence in a digital pound, should one be launched in the future.
#Privacy#CBDC#UnitedKingdom#Fintech#DFC
·dci.mit.edu·
Enhancing the Privacy of a Digital Pound
Embedding cross-border transaction policy compliance with Project Mandala
Embedding cross-border transaction policy compliance with Project Mandala
The Bank for International Settlements (BIS) and its central bank partners demonstrated that regulatory compliance can be embedded in cross-border transaction protocols. Project Mandala, which has reached proof-of-concept stage, aims to automate compliance procedures, enhance transparency of country-specific policies and provide real-time reporting and monitoring for regulators and supervisors. This architecture integrates a peer-to-peer messaging system, rules engine and proof engine. It ensures that all necessary compliance checks have been completed before the payment instruction is initiated, after which the system automatically generates a compliance proof, which accompanies any digital settlement asset or payment instructions across borders.
#Fintech#CrossBorder#CBDC#BIS#FinancialStability#FinancialIntegrity#CFM#DFC
·bis.org·
Embedding cross-border transaction policy compliance with Project Mandala
A Quantitative Analysis of the Holding Limit for a Digital Euro
A Quantitative Analysis of the Holding Limit for a Digital Euro
A paper co-written by a Deutsche Bundesbank staffer conducts a quantitative analysis to calculate a potential digital euro holding limit. It draws on a detailed dataset including individual bank level as well as aggregated banking group data for the entire euro area. It uses data and a simulation approach on the number of accounts in individual institutions and on account balance distribution. To assess the De impact on banks, the analysis is conducted for two different points in time reflecting different monetary policy environments with accommodative and restrictive stance. The effects of the CBDC are considered in three holding limit scenarios. The calculations reveal a lower bound holding limit of around 1,000 euro that almost all banks can handle. The results show a strong heterogeneity between the various euro area banks, as many could offer significantly higher limits. For the implementation of holding limits, the paper therefore proposes a model that has a low mandatory limit which every institution must offer, while providers can decide for themselves whether they like to offer a higher limit depending on their individual situation and customer base, subject to an approval process.
#CBDC#Fintech#Eurozone#FinancialStability#DFC
·papers.ssrn.com·
A Quantitative Analysis of the Holding Limit for a Digital Euro
Bangko Sentral ng Pilipinas completes Project Agila WCBDC testing
Bangko Sentral ng Pilipinas completes Project Agila WCBDC testing
Bangko Sentral ng Pilipinas and participating financial institutions (FIs) have completed proof-of-concept work on Project Agila. Agila allow FIs to transfer funds to each other even during off-business hours, including evenings, weekends, and holidays, using wholesale central bank digital currency (CBDC). The evaluation with FIs covered functional, performance, security, exploratory, end-to-end and programmability testing.
#Fintech#CBDC#wCBDC#PaymentSystems#Philippines#DFC
·bsp.gov.ph·
Bangko Sentral ng Pilipinas completes Project Agila WCBDC testing
CBDCs, banknotes and bank deposits: the financial stability nexus
CBDCs, banknotes and bank deposits: the financial stability nexus
Banco de España published a paper that explores the financial stability nexus within a monetary ecosystem that has been expanded to include a central bank digital currency (CBDC). It highlights the importance of partially adapting the two-tier system of money by implementing certain limits, as envisaged in CBDC plans. The endogenous mitigation of the risks through improved bank competition often attributed to CBDCs is uncertain and may be insufficient from a systemic risk perspective. The introduction of exogenous mitigants, like CBDC holding limits calibrated on the basis of a robust methodology, seems instrumental to ensure the consistency of a monetary ecosystem that includes a CBDC. Hence, the paper addresses some fundamental methodological issues related to these limits, such as the rationale for alternative targets for the limits, the influence of disintermediation speed, the time horizons involved in the limitation and adaptation process, and the role of regulatory and market frictions.
#CBDC#FinancialStability#Fintech#Spain#DFC
·bde.es·
CBDCs, banknotes and bank deposits: the financial stability nexus
CBDCs and fast payment systems: rivals or partners?
CBDCs and fast payment systems: rivals or partners?
The Bank for International Settlements (BIS) published a paper that analyzes how retail central bank digital currencies (CBDCs) and fast payment systems (FPSs) compare with each other and why some jurisdictions have opted for a retail CBDC, while others have chosen to introduce an FPS or both. Interviews with central banks in 14 jurisdictions around the world show that some see a case for both to fulfil different policy goals and complement one another. The paper's key conclusion is that the choice between a retail CBDC or an FPS, or both, is very contextual and will depend on the market features, ecosystem and degree of maturity and innovation of existing payment infrastructures in a country.
#Fintech#CBDC#FastPayments#BIS#WorldBank#DFC
·bis.org·
CBDCs and fast payment systems: rivals or partners?
Goldman Sachs, Clearstream, HQLAᵡ in live DLT intraday repo transaction
Goldman Sachs, Clearstream, HQLAᵡ in live DLT intraday repo transaction
As part of the ECB wholesale DLT settlement trials using central bank money, HQLAᵡ was involved in an intraday repo transaction where Goldman Sachs borrowed cash from Clearstream in exchange for collateral held on the HQLAᵡ DLT platform. HQLAᵡ is a collateral mobility solution in which assets held by custodians are locked and digitized in the HQLAᵡ digital collateral registry, with the legal agreements enabling collateral to transfer instantly using DLT. In this case, the cash leg of the transaction used the Bundesbank’s Trigger solution. The trades were agreed via the Eurex Repo F7 trading system, and Deutsche Börse’s Clearstream D7 digital securities platform was used as the market system operator.
#Fintech#CBDC#Eurozone#ECB#DLT#wCBDC#Tokenization#DFC
·ledgerinsights.com·
Goldman Sachs, Clearstream, HQLAᵡ in live DLT intraday repo transaction
Eurosystem completes tests using DLT for central bank money settlement
Eurosystem completes tests using DLT for central bank money settlement
The European Central Bank (ECB) concluded its tests of the use of distributed ledger technology (DLT) for wholesale settlement in central bank money. Between May and November 2024, the Eurosystem processed over 200 transactions and a total value of €1.59 billion. In total, 64 participants comprising central banks, financial market participants and DLT operators completed over 40 trials and experiments. Trials included actual settlement in central bank money, while experiments were tests with mock settlement. In January 2025, participants involved in the exploratory work will be invited to discuss lessons learned from the trials and experiments. The outcome of the analysis will inform the Eurosystem’s decision on its next steps.
#Fintech#CBDC#wCBDC#Eurozone#Settlement#Tokenization#ECB#DLT#DFC
·ecb.europa.eu·
Eurosystem completes tests using DLT for central bank money settlement
CBDCs will make FX transactions less risky
CBDCs will make FX transactions less risky
The foreign exchange market is subject to significant credit and settlement risks. While there are risk mitigation mechanisms, about one third of foreign exchange settlements are estimated to take place without them. Ousmène Mandeng writes that the adoption of central bank and other digital currencies can give rise to an entirely new settlement approach, collapsing the foreign exchange life cycle and freeing transactions from credit and settlement risks.
#Fintech#CBDC#Settlement Risk#CrossBorder#DFC
·blogs.lse.ac.uk·
CBDCs will make FX transactions less risky
Second progress report on the digital euro preparation phase
Second progress report on the digital euro preparation phase
The European Central Bank (ECB) published its 2nd progress report on the preparation phase of a digital euro, which was launched on November 1, 2023. Since the publication of the 1st progress report, the ECB has updated its digital euro scheme rulebook, aimed at harmonizing digital euro payments across the euro area. Also, the ECB has concluded a call for applications for selecting potential providers of digital euro components and related services, and started user research and experimentation activities, to gather insights into users’ preferences and to inform design decision-making. In addition, along with with key stakeholders, the ECB will be exploring innovative use cases for the digital euro, including conditional payments. In parallel, the ECB is working with Eurosystem national central banks and other competent authorities to develop a methodology for setting digital euro holding limits.
#Fintech#CBDC#Eurozone#ECB#DFC
·ecb.europa.eu·
Second progress report on the digital euro preparation phase
Kima Network executes purchase of tokenized stock with digital shekel
Kima Network executes purchase of tokenized stock with digital shekel
[October 31, 2024] During the Digital Shekel Challenge that concluded in October 2024, Kima, an asset-agnostic, peer-to-peer money transfer and payment protocol, successfully facilitated the transfer of a tokenized stock via digital shekel, demonstrating a successful use case of its cross-ecosystem interoperable delivery-vs-payment (DvP) solution. To demonstrate the utility of its transfer protocol, Kima built an imaginary trading platform called PeerTrade which facilitated an atomic swap of the tokenized share. Kima’s secure decentralized settlement layer orchestrated the transaction instead of an intermediary, directly linking the buyer interested in purchasing the stock using her digital shekels with the seller, who held a tokenized share in their wallet to receive the payment into their bank account in the form of regular shekels. https://www.boi.org.il/en/communication-and-publications/press-releases/the-bank-of-israel-held-a-concluding-conference-for-the-digital-shekel-challenge-today-and-announced-the-winners-of-the-challenge/
#Fintech#CBDC#Israel#Hackathon#DFC
·pr.reblonde.com·
Kima Network executes purchase of tokenized stock with digital shekel
The digital shekel challenge - la finale
The digital shekel challenge - la finale
[October 31, 2024] The Bank of Israel (BOI) concluded its Digital Shekel Challenge with presentations by the 14 entities selected to develop innovative use cases for the digital shekel. The use cases presented demonstrated the potential of the digital shekel to help create advanced payment solutions and lead innovation in Israel's payment system. First place was awarded to Siara for a platform for returning debtors to an economic growth path, second went to Paypal for a smart payroll payments system, third to IDEMIA for an offline payments solution, and the "People's Choice" to QEDIT for a platform that enhances trust for digital transactions using advanced cryptography.
#Fintech#CBDC#Israel#Hackathon#DFC
·boi.org.il·
The digital shekel challenge - la finale
Can the Digital Euro be made attractive to all key stakeholders?
Can the Digital Euro be made attractive to all key stakeholders?
Michael Salmony posted a paper that explores the challenges and opportunities related to the adoption of central bank digital currencies (CBDCs) with a particular focus on the Digital Euro. It critically addresses the often unclear problems CBDCs are intended to solve, and emphasizes the necessity of motivating key stakeholders, especially commercial banks, consumers, and merchants, to support and use them. It argues that simply mandating adoption is insufficient for success; instead, intrinsic motivation and clear business cases for each stakeholder group are essential. Additionally, the article proposes that an offline CBDC, resembling a modern form of cash, might offer a viable path forward, providing benefits such as increased financial inclusion and enhanced privacy. https://payments-innovation.com/
#CBDC#Eurozone#Fintech#DFC
·researchgate.net·
Can the Digital Euro be made attractive to all key stakeholders?
Future of payments 2024: Many Paths, One Goal
Future of payments 2024: Many Paths, One Goal
The Official Monetary and Financial Institutions Forum (OMFIF) Digital Monetary Institute (DMI) published its annual Future of Payments report, based on a survey of 34 central banks, 13 from advanced and 21 from emerging market economies. It found that platforms based on multi-currency central bank digital currencies (CBDCs) are emerging as alternatives to existing cross-border payments systems, with Project mBridge being the most advanced, although liquidity issues and governance concerns still pose limitations for widespread adoption. CBDC interoperability will be a key consideration for global payments going forward, with a hub-and-spoke model being favored by survey respondents. Standardization (e.g., migrating to ISO 20022 standards) is helping to reduce the costs and frictions in cross-border payments, but implementation is patchy. However, instant payments systems are rapidly growing in importance, with 47% of survey respondents selecting it as the most promising avenue for improving cross-border payments.
#Fintech#CrossBorder#CBDC#FastPayments#DFC
·omfif.org·
Future of payments 2024: Many Paths, One Goal